ANNOUNCEMENT 21 Jan 2015

In January 2015, the Portuguese government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Portugal under the European Agricultural Guarantee Fund (EAGF) 2014-2020 (see related state act).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Diário da República Eletrónico. "Despacho normativo n.º 3/2015, O Regulamento (UE) n.º 1307/2013, do Parlamento Europeu e do Conselho, de 17 de dezembro de 2013, veio consubstanciar o acordo político alcançado no final de 2013 sobre a reforma da Política Agrícola Comum (PAC), o qual resulta de três anos de negociações". 21/01/2015. Available at: https://dre.pt/pesquisa/-/search/66263533/details/maximized?p_p_auth=pAnIQ9q2

EUR-Lex. Official Gazette. "Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009". 20/12/2013. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1307&qid=1619526760849

Inception date: 21 Jan 2015 | Removal date: 31 Dec 2020

Financial grant

On 21 January 2015, the Portuguese government published Normative Order No. 3/2015 establishing the eligibility criteria and requirements of the direct income payment scheme. Under the scheme, eligible local farmers receive direct income payments under the European Agricultural Guarantee Fund (EAGF). The 2015-2020 budget for these Portuguese payments was set out in Regulation (EU) No 1307/2013 at EUR 2.9 billion (approx. USD 3.4 billion).

Income support measures to farmers take the form of financial grants. According to Regulation (EU) No 1307/2013, beneficiaries are active farmers that meet minimum requirements further specific by member states. In the case of Portugal, the adopted Order establishes the national eligibility criteria and requirements to be met by applicants with regards to, among others, minimum area requirements and climate and environmental practices.

The payments will be managed by the Agriculture and Fisheries Financing Institute (IFAP in Portuguese), a paying agency and public operator that ensures the functioning of the common rules for direct support schemes under the EU's Common Agricultural Policy (CAP). 

The measure will be applicable until 2020. Until January 2015, Portugal was granting income support under the rules and budget set by the CAP framework 2007-2013. In order to grant income support payments to Portuguese farmers using the budget from the 2015-2020 budget, Portugal needed to establish the national rules for the 2014-2020 CAP framework. 

EU's CAP framework

The CAP framework is the EU-wide agricultural policy established in 1962 that is subject to reforms and new rules every six years. According to the EU, it aims to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food. Under the CAP, Member States provide three main types of support to the agriculture sector: (i) income support measures, (ii) market measures; and (iii) rural development measures. The two first are primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).

AFFECTED PRODUCTS

 
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